Bricks Or Clicks: Consumer Preference - a Comparative Analysis Sunil*

Article can be accessed online at http://www.publishingindia.com Bricks or Clicks: Consumer Preference - A Comparative Analysis Sunil*

Abstract

With the transformation in the information technology, easy accessibility of the Internet, improved and reliable banking services, use of smartphones and tablets, e-commerce has given business an unprecedented marketing opportunity over the past few years. It has also provided an opportunity to consumers to buy the products just by clicking the mouse. Online retailing has emerged as a threat to the traditional retailing. Consumers have plenty of options to buy their products, not only from domestic market but also from international market. In this study an attempt has been made to assess the consumer’s preferences while purchasing their products online and offline. Further, it has also been tried to study the comparative advantages and disadvantages of traditional stores and web stores. To attain the objectives, responses from 875 respondents were collected randomly between January 2012 and April 2012 from the consumers residing in Delhi and NCR. To evaluate their preferences 7 point scale rating method has been applied where 1 indicates absolutely low and 7 indicates absolutely high. The study found that web stores have some competitive advantages over traditional stores as they charge lower price, provide easy and effortless information about the products, provide convenient mechanism to place orders and payment, better assortment, keep ample stock, and also provide wider options for consumers to select their purchases. The study further reveals that traditional retailers also have some competitive edge over web stores. Traditional retailers provide facility of physical examination of products, immediate possession, surety of delivering the same product as specified, immediate satisfying consumer’s queries with the help of salesmen, better after sales services and better return policy. Besides all these, it also helps consumers to have social and family experience while shop. Keywords: Bricks and Clicks, E-commerce, Online, Offline, Assortment, Web Stores, Virtual Mall

Introduction users are between 15-34 years of age (Com Score). The size of female Internet users is 15 percent (IAMAI).

With the advent of the Internet, smartphones and tablets, With the induction of 3 G services on Internet connectiv- the e-commerce over the past few years has given ity on mobile, laptops, and tablets, online transactions are business an unprecedented marketing opportunity and expected to grow rapidly. The total e-commerce business also facilitated consumers to buy the products by just in India (including other products and services) is esti- clicking the mouse. The terms like “Clicks and Mortar”, mated to be around USD 10 billion. Online retail which is “Bricks and Clicks”, Surf and Turf”, “Cyber-enhanced around 6 percent of total e-commerce, was around USD retailing”, “Hybrid e-commerce”, etc. have emerged with 0.6 billion in 2011 and growing at a CAGR of 70 percent this and are being used for offline and online retailing. (Retail News by Financial Express). Spurt in e-commerce There are almost 121 million Internet users in India has attracted a number of sites and virtual malls offering (IAMAI). Internet penetration rate is 8.20 percent (Burson different types of commodities to consumers. Indian e- Marsteller). There are 97 million active Internet users who commerce market hosted USD 3 billion of transactions in go online at least once a month. 73 million users are from 2011 (IAMAI). A total of 9 million Internet users carried main cities and 24 million are from rural areas (IAMAI). out online transactions in 2011 (Avendus). There were 19.67 million Internet subscribers and 11.89 million broadband subscribers as on 31st march 2011 It is a fact that e-commerce has widened its scope but it (TRAI Annual Report 2011). 75 percent of the Internet has not been able to cover much of the population yet. As

* Assistant Professor, Department of Commerce, College of Vocational Studies, University of Delhi, New Delhi, India. E-mail: [email protected] 2 International Journal of Marketing and Business Communication Volume 2 Issue 3 July 2013 per the data issued by World Bank, around 90 percent of 7 to products, and 5 to generic terms. Google India’s the population is offl ine, which includes rural and urban study on consumer behaviour (2008) states that large population. 50 percent of the population of India is aged numbers of people research electronics goods, technology under 25 and 65 percent of the population of India is aged products, consumer’s electronics, mobile, laptop, digital under 35 (source: Census 2011). As mentioned earlier, camera on internet but mostly buy it offl ine. Google India that 75 percent of the Internet audiences are between is targeting the electronics goods retailers with some 15-34 years of age. Therefore, it is expected that there interested numbers, which suggests that large number of is immense potential for e-commerce to grow in India. people research electronic goods on the Internet but buy Further, the trend is also evident that the confi dence offl ine. It provides e-retailers to a platform to advertise among the buyers has also been growing towards online their products on Google to generate leads for offl ine retailing. In the fi rst phase of 2004-05, consumers were buys. Technology products, consumer electronics are comfortable in buying low value items online like gifts searched online and bought offl ine mostly. Only less than and books. In the second phase of 2006-10, consumers 30 percent searches are converted into online purchases. started buying different types of gadgets online. The third 6.1 million mobile-related searches were made on Google phase is the current scenario where consumers are more in India every month, nearly 7,00,000 laptop-related confi dent in buying high value items (Payal Kapoor). searches were made, and 3, 00,000 digital-related searches were made every month. Looking at the shift in the consumer’s preference particularly in big cities, there is a fear that web stores Manouchchr Tabatabari (2009) in a study found that more will take over the traditional stores. Therefore, it has expensive and standard products are being compared become imperative to assess the preferences, behaviour by consumers on the basis of information and products and the factors infl uencing consumers while they shop. In available online and ultimately being bought at traditional this study same has been tried to assess so that products stores. It helps consumers to save their energy and and services could match the expectation of consumers. time from going one to another shop for searching and comparing products. Neilsen (2009) found that consumers R��i�� o� Lit�r�tur� trust other consumers’ opinions posted online juxtaposed to ads served in search engine results. Mam De Ros, in Ranganatham and Ganapathy (2002) found in their study an article, states that according to UK-based Shopper that security and privacy issues drive away the consumers Centric “Shopping in a Multichannel World” survey, 8.7 from online shopping. They are reluctant to pass their percent of surveyed respondents are using store as a part personal information. Schoenbachler and Gordon (2002) of their purchase journey. However e-consultancy that reveal in their study that online stores are keeping reports on the survey, adds high prices, crowds and time low-priced items and large stock to attract and retain taken are seen as drawback, consumers have become time customers. The 24/7 availability of the products and conscious so they are shifting towards online. Compared information about products have changed retail industry to other generations, younger generation is using their and consumer shopping. Huang, Gchrank Schrank, smartphones and tablets more often in purchase process. and Dubinsky (2004), Kim and Kim (2004), Levin and Neilson (2010) found that consumers are more relying Heath (2003) in their respective study found that time on the products that are online reviewed by consumers and location constraints, convenience, availability of and peer groups. They are actively participating in products, incentive programme and easy comparison of showing strengths and weaknesses of a product to their production induce shoppers to shop online. respective groups. Rishi (2010) highlighted in his study that reliability; accessibility, and convenience are the A study by Pew Internet and American life project major motivating factors which motivate consumer to buy suggests that most online browsers need about one to online. He also states that reluctance and preference are three years to become online shoppers (Lepkowska-White the two decisional factors which infl uence the decision of 2004). Newbury in a marketing article refers a US-based the consumer to buy online or offl ine. study conducted in May 2007 and stated that almost $400 billion of store sales were infl uenced by the web. On the Manyika and Roxburgh (2011) in their study state that top 100 terms, 88 searches were related to brand names, consumers are visiting price comparison websites before Bricks or Clicks: Consumer Preference - A Comparative Analysis 3 buying online and offl ine. They also state that the prices R��rc� M�t�odo�o�� shown online are on an average 10 percent lower than those offl ine as a result of the price transparency afforded Primary data for this study were collected randomly by search tools. Beal Vangie (2011) found in his study that through a structured questionnaire. It was distributed research engines are primarily used for searches followed among 875 consumers residing in Delhi and NCR by gathering information from retailers and manufacturers between January 2012 and April 2012, who buy products websites. The product reviews are number one factor and from web stores as well as from traditional stores. The impacting the buying decision. Graham Charlton (2011) questions related to fi ve products category on the basis of found that several fashion retailers have been building 17 different variables by using 7 point scale (1 indicating their social media profi les and attracting large following very unimportant and 7 very important) were asked to the in Facebook and Twitter. Consumers are looking for latest respondents. The respondents on the basis of their online offers and competitions via social media. and offl ine purchase experiences provided the information. Rand Media Group (2012) states that as per report by The analysis and interpretation of data have been done by Nielsen and Pew Research Centre, social networking sites dividing scales into three parts. In the fi rst part the scales are becoming very useful to learn about a specifi c brand absolutely low, very low and low are merged into one, to or retailers and active users of these sites follow a brand. rate low preference. The second part is the scale about the Platforms coming out on top for brand research and vetting same where respondents are indifferent. The scales high, are consumer review sites like Yelp and Amazon reviews. very high and absolutely high are merged into one, to rate Consumer generated reviews and products rating are most high preference in the third part. preferred sources of products information among social media users. Rachel Ufer (2012) states that consumers D�t� An��i� want to have a better relationship with the brands. They are more cautious, resourceful and scrutinising even The concept of online trading is very new and it requires before. They expect brand to be healthier, more fulfi lling some technological expertise. So the users of this format lives. Charlton (2012) states that 80 percent consumers of retailing are mainly from younger generation. Table in UK reserve products online for collection in store, 44 1 shows that out of total respondents 76.7 percent percent always research product before buying offl ine. respondents were between the age of 15-35 years, 21.2 Smartphones are being used compare products and prices percent between 35-55 years, and 2.1 percent between 55- and for product reviews. 65 years. Table 1 depicts that 44.2 percent, 22.3 percent, and 13 percent of the respondents were students, private The above review of literatures shows that there are employees and business person respectively. These numerous factors that infl uence the preference of three constitute the major proportion of respondent’s consumers to buy various products online or offl ine. With occupation. The other three occupations constitute less the changes in socio-economic, political, technological, than 21 percent. 62.86 percent of the respondents were and cultural environment, the preferences and behaviour male and rest were female. of people also tend to change as these have direct and indirect infl uence on people and their livelihood. There are various factors that can infl uence the purchase of products by consumers from web stores or traditional O��cti�� o� t�� Stud� stores. They expect reasonable price of commodities, better promotional services, easily availability of ∑ To assess the consumers’ preferences for their pur- information, facility of examination of products, chases online or offl ine immediate possession of goods, certainty of receiving ∑ To study the factors infl uencing consumers’ be- the product as per description, ease of placing order haviour while buying various products online and and making payment, pre and post purchase services, offl ine availability of various brands and variety, better purchase return policy, availability of ample stock, time saving, ∑ To analyse the comparative advantages and disad- facility of product evaluation, family and social experience vantages of web stores and traditional stores etc. Here in this study, a comparative evaluation has been 4 International Journal of Marketing and Business Communication Volume 2 Issue 3 July 2013 made to know the facilities or benefi ts provided by web are less in web stores. However, 31.9 percent of the stores and traditional stores to consumers. respondents feel that prices are same. Only 13.4 percent respondents are of the view that web stores charge high Table 1: Socio-economic Profi le of the Respondents prices.

Variable Name Number of Respondents Percent Table 2: Compared with Buying in Traditional Age Groups (in years) Stores, How would you describe the List Prices (not 15-25 438 50.1 included charges for Shipping and Handling) of the 25-35 233 26.6 Products when buying from a Web Store? 35-45 107 12.2 45-55 79 9.0 Frequency Percentage 55-65 11 1.3 30% lower 54 6.2 above 65 7 0.8 20% lower 149 17.0 Total 875 100 10% lower 276 31.5 Occupations about the same 279 31.9 Business 114 13.0 10% higher 80 9.1 Govt. Employee 70 8.0 20% higher 25 2.9 Private Employee 195 22.3 30% higher 12 1.4 Student 387 44.2 Total 875 100.0 Self Employed 82 9.4 *Source: Primary Data Others 27 3.1 Total 875 100.0 Promoti onal Schemes Sex categories Male 550 62.86 Promotional schemes offered by retailers have a great Female 325 37.14 effect on consumers’ buying behaviour. The promotional Total 875 100.0 schemes offered by web stores and traditional stores may Level of Education vary and it can appeal consumers in different way. The Primary 10 1.14 study shows that promotional schemes offered by web Secondary 200 22.86 stores for different product categories like electronic Graduate 415 47.43 goods, home appliances, apparels and entertainment Post Graduate 250 28.57 items are high and for fast moving consumable goods Total 875 100.0 (FMCG) are at par. 46 percent, 43.2 percent, 49.2 Income Groups (in Rupees) percent, and 39.0 percent of the respondents while Less than 50,000 11 1.26 buying electronic goods, home appliances, apparels, and 50,000-1,00,000 125 14.29 entertainment items respectively feel that web stores have 1,00,000-5,00,000 220 25.14 attractive promotional schemes, though, 24 percent, 24.2 5,00,000 and above 519 59.31 percent, 28.4 percent, and 26.5 percent respectively rate Total 875 100.0 promotional schemes at par with the traditional stores.

Price Easy Availability of Informati on

Price plays a very important role in consumers’ decision Consumers nowadays have become very choosy and they whether to buy online or offl ine. want to access information without spending much time and energy. Therefore, the retailers have to provide easy access The data (Table 2) show that the prices charged by web to information about the products and schemes to consumers stores (excluded shipping and handling charges) are quickly. This can help retailers to attract consumers to buy less compared to traditional stores. 54.7 percent of the their products. The study (Table 4) shows that consumers get respondents are of the view that prices of the products Bricks or Clicks: Consumer Preference - A Comparative Analysis 5

Table 3: Compared with Traditional Stores how Attractive are Promotional Schemes of Web Stores (Responses are in percentage)

Product Category Absolutely Very low Low About the High Very high Absolutely low same high Entertainment items 7.5 8.2 18.8 26.5 26.1 9.1 3.8 Electronic goods 2.0 7.1 20.9 24.0 28.7 14.6 2.7 Fast Moving Consumable Goods (FMCG) 3.7 5.6 22.0 41.0 15.5 8.7 3.4

Home Appliances 3.1 8.0 21.5 24.2 29.7 9.6 3.9 Apparels 5.1 6.1 16.3 28.4 23.2 14.7 6.3

*Source: Primary Data

Table 4: Compared with Traditional Stores How Much Time and Efforts generally it takes to Search Relevant Information When Buying from Web Stores (Responses are in percentage)

Product Category Absolutely Very low Low About the High Very high Absolutely low same high Entertainment items 9.5 14.3 32.6 19.4 18.5 3.8 1.9 Electronic goods 3.7 16.9 29.7 22.8 16.6 7.4 2.9 Fast Moving Consumable Goods (FMCG) 5.0 12.7 27.1 33.4 13.3 6.1 2.5 Home Appliances 3.5 14.2 25.1 27.7 16.6 7.4 5.4 Apparels 5.7 11.3 21.5 24.7 20.4 9.9 6.5

*Source: Primary Data relevant information in less time and without much effort percent and 38.2 percent of the respondents respectively from web store compared to traditional stores. 56.4 percent, fi nd diffi culty in physical examination of product while 50.3 percent, 44.8 percent, 42.8 percent and 38.5 percent of buying from web stores. the respondents get information about entertainment items, electronic goods, FMCG, home appliances, and apparels Ease in Possession of Product respectively in web stores easily and without wasting much time. Only less than 30 percent of the respondents in each The consumers like to get the possession of goods as product category (except apparels where 36.8 percent) feel soon as possible. The products that are urgently required otherwise. cannot be delayed. The delay in transfer of possession may affect the purchase behaviour. The study (Table 6) Examinati on of Product shows that there is diffi culty in possession of products in all product categories while buying online. 38.1 percent, There are certain types of products where consumers like 48.7 percent, 42.8 percent, 48.5 percent, and 52.2 percent to examine them physically. After examining the products of the respondents while buying entertainment items, they decide whether to buy or not. The study (Table 5) electronic goods, FMCG, home appliances, and apparels reveals that there is a diffi culty in examining all types of products respectively fi nd problems in timely possession product groups under study except entertainment items when they buy online. where 41 percent of the respondents feel that they do not fi nd any diffi culty in physical examination as against 35.5 Uncertainty of Receiving the Product Specifi ed percent respondents who feel otherwise while buying online. In apparels, home appliances, electronic goods If consumers fi nd any difference between the products and FMCG products, 54.9 percent, 50.9 percent, 48.4 demanded and those actually delivered by the retailer, it 6 International Journal of Marketing and Business Communication Volume 2 Issue 3 July 2013 Table 5: Compared to Offl ine How Much Diffi culty is Faced to Examine the Products Physically while Buying Online (Responses are in percentage)

Product Category Absolutely Very low Low About the High Very high Absolutely low same high Entertainment items 11.0 10.2 19.8 23.5 24.4 7.5 3.6 Electronic goods 3.0 11.9 14.5 21.2 27.7 16.0 5.7 Fast Moving Consumable Goods (FMCG) 4.0 10.6 19.1 28.1 22.4 10.6 5.2 Home Appliances 3.5 10.8 14.3 20.4 30.5 14.2 6.2 Apparels 4.4 7.5 14.0 19.2 25.0 16.0 13.9

*Source: Primary Data

Table 6: Compared to Traditional Store, How Much is the Problem of Delayed Possession of Products Buying from Web Store (Responses are in percentage)

Product Category Absolutely Very low Low About the High Very high Absolutely low same high Entertainment items 9.7 5.8 19.2 27.2 28.0 7.8 2.3 Electronic goods 2.4 7.0 17.0 25.0 32.5 12.6 3.6 Fast Moving Consumable Goods (FMCG) 3.0 5.8 19.7 28.6 27.2 11.1 4.5 Home Appliances 3.0 6.6 17.6 24.3 30.4 13.5 4.6 Apparels 2.7 6.7 13.1 25.4 27.8 14.3 10.1

*Source: Primary Data may create dissatisfaction among the consumers. To do for entertainment items almost an equal number of away with such problems consumers like to choose and respondents have different opinion. pick their purchases personally. The data (Table 7) shows that there is uncertainty of receiving the same products Ease of Placing Order and Making Payment as described from web stores except entertainment items. More than 50 percent of the respondents feel that home The choice of purchasing from online and offl ine sources appliances and apparels products which they receive also depends upon ease of placing order and making do not match what they actually ordered. However,

Table 7: Uncertainty of Receiving Same Product as per Description while Purchasing from Web Store as Compared to Traditional Store (Responses are in percentage)

Product Category Absolutely Very low Low About the High Very high Absolutely low same high Entertainment items 7.7 7.4 20.9 27.7 24.6 7.8 3.8 Electronic goods 2.9 8.0 16.1 26.1 29.4 12.8 4.6 Fast Moving Consumable Goods (FMCG) 3.0 6.5 18.2 36.2 21.1 9.6 5.4 Home Appliances 1.9 7.0 17.0 23.1 29.8 16.7 4.5 Apparels 3.9 6.3 12.4 20.3 24.6 20.6 12.0

*Source: Primary Data Bricks or Clicks: Consumer Preference - A Comparative Analysis 7

Table 8: Problems in Placing Order and Paying while Purchasing from Web Store as Compared to Traditional Store (Responses are in percentage)

Product Category Absolutely Very low Low About the High Very high Absolutely low same high Entertainment items 9.0 10.9 23.9 27.2 22.0 4.2 2.8 Electronic goods 2.8 11.4 24.2 27.4 23.4 8.0 2.8 Fast Moving Consumable Goods (FMCG) 4.7 8.8 26.6 29.5 20.1 7.2 3.2 Home Appliances 2.6 10.3 22.8 27.2 21.5 11.1 4.6 Apparels 3.2 7.5 21.0 26.4 24.7 8.4 8.8

*Source: Primary Data payment. The study (Table 8) depicts that for entertainment shows that there is problem in availing the service of items, electronic goods and FMCG product, there is less salesman or customer representative before buying problem in making payment and placing order while entertainment items, electronic goods, FMCG and home buying from web store. However, while buying home appliances. While buying apparels from web stores only appliances and apparels, there is little more problem in 40.3 percent of the respondents fi nd easy to approach web stores as compared to traditional stores. 43.8 percent, these sales representatives as compared to 36.5 percent of 38.4 percent, and 40.1 percent of the respondents while the respondents fi nd otherwise. Rest 23.2 percent of the purchasing entertainment items, electronic goods, and respondents fi nd web stores and traditional stores at par. FMCG do not fi nd any diffi culty in placing orders and paying for them. Though, 37.2 percent and 41.9 percent Brand and Variety of the respondents fi nd problems for the same while buying home appliances and apparels respectively from The consumers have become more brand conscious and web stores. they always look for different brands and variety. The more the availability of brands and variety, the more the Pre-sale Services from Salesman or Customer visit of consumers will be there. The study reveals that Representati ve there are more brands and greater variety of products available in the web stores as compared to offl ine. 44.1 Before fi nalizing the deal, customers may have certain percent, 46.9 percent, 38.4 percent, 46.4 percent and queries which they want to satisfy. They need the help of 50.8 percent of the respondents fi nd more variety of salesmen or customer service representatives. Unless and entertainment items, electronic goods, FMCG, home until customers get satisfactory answers to their queries, appliances and apparels respectively in web stores as they may not buy the product. The study (Table 9) compared to traditional stores. However, 26.7 percent,

Table 9: How Easy is it to Get the Services of Salesman or Customer Service Representatives before Buying Products from Web Store as Compared to Traditional Retailers? (Responses are in percentage)

Product Category Absolutely Very low Low About the High Very high Absolutely low same high Entertainment items 7.0 11.2 25.3 24.9 23.0 5.5 3.2 Electronic goods 2.9 10.3 25.5 25.7 21.7 10.2 3.7 Fast Moving Consumable Goods (FMCG) 2.8 10.9 27.1 33.2 15.0 6.6 4.4 Home Appliances 2.0 12.0 24.2 24.5 22.8 8.9 5.5 Apparels 3.5 11.5 21.5 23.2 19.8 12.0 8.5

*Source: Primary Data 8 International Journal of Marketing and Business Communication Volume 2 Issue 3 July 2013 Table 10: Availability of Brand and Variety of Products in the Web Stores as Compared to Traditional Store (Responses are in percentage)

Product Category Absolutely Very low Low About the High Very high Absolutely low same high Entertainment items 5.2 8.0 15.8 26.7 26.9 11.5 5.7 Electronic goods 1.5 5.1 17.7 28.8 24.1 15.2 7.6 Fast Moving Consumable Goods (FMCG) 2.8 8.0 17.9 32.9 21.1 10.3 7.0 Home Appliances 1.6 4.9 17.6 29.5 25.8 13.6 7.0 Apparels 3.9 5.9 15.6 23.9 22.6 15.9 12.3

*Source: Primary Data

28.8 percent, 32.9 percent, 29.5 percent and 23.9 percent Purchase Return Services of the respondents respectively fi nd both form of retailing at par. The consumers may look for those retailers who provide after sale services. It is more important in a situation where Post-purchase Services the actual users and buyer are two different persons. Such facilities may enhance the confi dence among the buyers The consumers are demanding more and more services to buy the products from them. The data (Table 12) which are without any charge. The competition is so reveal that there is a problem of purchase return if high that it is tough to ignore their demand. There is products are bought from web stores. A T Kearney in its pressure on retailers to provide free of cost after sale study, “India Ranks 5th in Global Retail Development services. The study reveals that there is a problem of Index but Where in Global E-commerce Index?” has post-purchase services on purchase of products under also highlighted the problem of reliable purchase return study except entertainment items and FMCG product. services due to underdeveloped infrastructure. More than While buying entertainment items and FMCG 37 percent 50 percent of the respondents (except in entertainment and 33.8 percent of the respondents respectively do not items 47.2 percent and FMCG 47.9 percent) feel that there fi nd problems in post-purchase services. However, 30.1 is a problem of purchase return services while purchasing percent and 33.5 percent of respondents rate both online entertainment items, electronic goods, home appliances, and offl ine at par while purchasing the same. and apparels from web stores as compared to traditional stores.

Table 11: Problems of Post Purchase Services after Purchasing from Web Stores as Compared to Traditional Stores (Responses are in percentage)

Product Category Absolutely Very Low About the High Very high Absolutely low low same high Entertainment items 8.9 7.2 20.9 30.1 23.4 5.5 4.0 Electronic goods 2.0 9.5 18.1 29.8 24.4 11.9 4.2 Fast Moving Consumable Goods 4.8 7.9 21.1 33.5 21.1 6.7 5.0 (FMCG) Home Appliances 2.2 9.6 16.2 29.1 26.9 11.4 4.7 Apparels 5.3 6.9 15.8 30.4 22.2 10.4 8.9

*Source: Primary Data Bricks or Clicks: Consumer Preference - A Comparative Analysis 9

Table 12: Problem in Purchase Return after Buying from Web Stores as Compared to Traditional Stores (Responses are in percentage)

Product Category Absolutely Very low Low About the High Very high Absolutely low same high Entertainment items 7.8 7.7 17.3 20.1 29.4 12.3 5.5 Electronic Good 3.0 8.1 15.9 20.6 26.0 19.0 7.4 Fast Moving Consumable Goods (FMCG) 5.1 5.4 15.8 25.8 25.9 13.6 8.4 Home Appliances 4.1 8.2 13.8 20.8 26.1 19.6 7.4 Apparels 5.3 6.1 14.2 20.6 23.3 16.7 13.8

*Source: Primary Data

Product Quality Level stores. Though, 28.2 percent, 31.8 percent, 24 percent, 30.1 percent and 31.3 percent of the respondents still feel Quality is a very important factor in making the purchase that there is a quality difference in entertainment items, decision. The product quality available in different electronic goods, FMCG, home appliances and apparels stores may infl uence the visit of consumers to the shop. respectively offered in web stores. As study shows that there is no major quality difference in products available in both web stores and traditional Availability of Ample Stock store. As more than 43 percent of respondents (except apparels where 37.1 percent) do not ﬁ nd any difference At the times of high sales maintenance of optimum in quality of products offered in both online and offl ine stock level is very important for retailers to avoid loss of

Table 13: Difference in the Quality of Product while Purchasing from Web Store as Compared to Traditional Stores (Responses are in percentage)

Product Category Absolutely Very Low About the High Very high Absolutely low low same high Entertainment items 5.2 5.1 14.4 47.0 19.9 6.6 1.7 Electronic goods 2.2 7.2 15.6 43.1 19.9 8.2 3.7 Fast Moving Consumable Goods (FMCG) 3.0 6.3 21.3 45.3 15.4 5.0 3.6 Home Appliances 2.2 7.4 18.2 42.0 19.3 8.0 2.8 Apparels 4.0 8.1 19.5 37.1 16.5 7.9 6.9

*Source: Primary Data

Table 14: Stock- out Problem in Web Store as Compared to Traditional Stores (Responses are in percentage)

Product Category Absolutely Very low Low About the High Very high Absolutely low same high Entertainment items 9.3 7.4 26.2 30.8 18.0 5.2 3.1 Electronic goods 3.0 12.6 22.6 32.9 18.7 7.0 3.3 Fast Moving Consumable Goods (FMCG) 3.7 7.2 27.7 37.3 14.6 5.2 4.3 Home Appliances 3.1 8.8 22.3 33.1 20.9 8.1 3.6 Apparels 4.8 6.9 22.1 29.5 18.4 11.2 7.1

*Source: Primary Data 10 International Journal of Marketing and Business Communication Volume 2 Issue 3 July 2013 Table 15: Convenience of Product Evaluation on the Basis of Various Attributes like Size, Colour, or Features when buying Goods from Web Store as Compared to Traditional Stores (Responses are in percentage)

Product Category Absolutely Very low Low About the High Very high Absolutely low same high Entertainment items 6.3 9.8 18.9 31.3 22.1 7.8 3.7 Electronic goods 2.9 10.7 20.9 30.1 22.1 10.0 3.3 Fast Moving Consumable Goods (FMCG) 4.0 10.8 22.5 34.8 17.5 7.3 3.2 Home Appliances 3.5 9.2 21.6 29.5 21.8 9.6 4.9 Apparels 7.5 9.5 21.3 25.9 18.7 10.4 6.8

*Source: Primary Data sale. The accurate assessment of demand is essential to evaluate the electronic goods and home appliances while maintain the stock level. The data reveal that stock-out purchasing from web store. 35 percent, 37.3 percent and problem in web stores is low as compared to traditional 38 percent of respondents fi nd it inconvenient to evaluate store except in apparels. 42.9 percent, 38.2 percent, 38.6 entertainment items, FMCG and apparels respectively percent and 34.2 percent of the respondents feel that web while purchasing online. While 35.9 percent and 36.3 stores keep ample stock of entertainment items, electronic percent of the respondents fi nd it convenient to evaluate goods, FMCG and home appliances respectively. While electronic goods and home appliances respectively while for apparels 36.7 percent of the respondents feel that there purchasing from web stores as compared to traditional is a problem of stock out in web stores as compared to stores. traditional stores. Time Saving Convenience of Product Evaluati on In the era of sophisticated technology and revolution in Consumers buy the products after making proper communication facilities where everything is so quick evaluation on the basis of size, colour, feature, price etc. that consumers do not want to waste their time just to They expect to have ample opportunity to evaluate. locate, evaluate, select and purchase. They want tested and trusted way of purchasing. In this situation it has The consumers expect assistance from the seller in this become imperative to build up confi dence among the regard. Such assistance may infl uence their purchasing consumers that whatever they are being provided is the behaviour. The study shows that it is inconvenient to best. The study (Table 16) shows that the web stores evaluate the entertainment items, FMCG, and apparels provide ample opportunities to browse, locate, evaluate, when buying online. However, it is convenient to select and purchase a product. Web stores also take less

Table 16: Compared to Traditional Stores, How Much Time it Takes to Get Online, Locate, Evaluate, Select, and Purchase of Product from Web Store (Responses are in percentage)

Product Category Absolutely Very low Low About the High Very high Absolutely low same high Entertainment items 9.1 14.3 28.5 23.0 17.2 5.0 2.9 Electronic goods 5.5 13.2 30.7 23.5 16.1 8.2 2.8 Fast Moving Consumable Goods (FMCG) 6.3 14.5 24.6 26.1 19.0 7.0 2.5 Home Appliances 4.6 13.8 25.9 21.2 21.2 9.1 4.2 Apparels 6.4 12.1 21.1 22.0 19.1 10.9 8.3

*Source: Primary Data Bricks or Clicks: Consumer Preference - A Comparative Analysis 11

Table 17: Compared to Traditional Retail Shopping, How Easy to Have an Interesting Family or Social Experience Shopping while Buying from Web Store (Responses are in percentage)

Product Category Absolutely Very low Low About the High Very high Absolutely low same high Entertainment items 12.5 11.1 27.7 22.5 18.8 3.8 3.5 Electronic goods 7.1 15.1 23.4 26.4 18.9 7.2 1.9 Fast Moving Consumable Goods (FMCG) 9.8 14.6 24.1 27.3 13.9 7.3 3.0 Home Appliances 8.1 13.2 26.5 23.0 17.2 7.6 4.5 Apparels 12.7 14.0 19.9 21.2 17.1 7.9 7.2

*Source: Primary Data time for the same (except for apparels).51.9 percent, Ease of Browsing 49.4 percent, 45.4 percent, 44.3 percent and 39.6 percent of the respondents while buying entertainment items, Where the consumers have plenty of options, they try to electronic goods, FMCG, home appliances, and apparels buy from the source which suits them more. The study respectively are of the view that it is very convenient to (Table 18) shows that there is convenience of browsing of locate, evaluate, select and purchase of products from products in web stores as compared to searching products web stores as compared to traditional stores. at traditional stores. 43.4 percent, 47 percent, 38 percent, 45.6 percent and 46.9 percent of the respondents feel Family and Social Experience that it is very convenient to browse entertainment items, electronic goods, FMCG, home appliances and apparels There are situations where people go out for family respectively in web stores as compared to traditional leisure and they involve in impulsive purchasing. There stores. However, 33.7 percent, 28.6 percent, 32.6 percent, are situations where people go to market without any 29.6 percent, 28.9 percent of the respondents respectively intention to buy but if they are offered some lucrative offer feel otherwise. they may not resist the offer to buy products. The study shows that there is a lack of family and social experience Conc�u�ion while buying from web stores. More than 45 percent of the respondents while buying products speciﬁ ed in Revolution in banking sector and communication has the study from web stores ﬁ nd absence of social and brought paradigm shift in the functioning of business. The family experience. However, 25 percent to 31 percent of consumers have plenty of options available with them. the respondents in all product groups’ respondents feel They can buy products online or offl ine. The preference otherwise. of buying product from online or offl ine depends upon

Table 18: Convenience of Browsing of Products in Web Store as Compared to Traditional Stores (Responses are in percentage)

Product Category Absolutely Very low Low About the High Very high Absolutely low same high Entertainment items 7.4 8.3 18.0 22.9 28.4 9.0 6.0 Electronic goods 2.9 9.5 16.2 24.3 25.4 15.6 6.1 Fast Moving Consumable Goods (FMCG) 4.7 7.5 20.4 29.4 23.5 8.9 5.6 Home Appliances 3.1 7.4 19.1 24.9 27.7 11.2 6.7 Apparels 7.4 8.6 12.9 24.3 22.7 15.3 8.9

*Source: Primary Data 12 International Journal of Marketing and Business Communication Volume 2 Issue 3 July 2013 various factors. The availability of these factors attracts goods, need driven purchases in India as compared to consumers to go online or offl ine. There are certain impulsive buying in US customers has also driven out factors like price, promotional schemes, ease of getting customers from online retail (Harpreet Ajmani). Both information, facility of examination of product, ease in online and offl ine sources are being used for buying the possession of product, certainty of getting product as products by consumers after evaluating relative strengths specifi ed, ease of placing order and making payment, and drawbacks. The fear that online retail will take all pre-sale services from sales representative, availability the space of offl ine is still a myth. It can only be a reality of brands and variety, post-purchase services, purchase when all the above mentioned problems are taken care of. return facilities, standardization of product, availability of However, these two ways of retailing can reciprocate each optimum stock level, convenience of product evaluation, other and can help retail business to touch new heights. economy of time, family or social experience, shipping and handling charges, and ease of browsing that infl uence R��r�nc�� the purchasing decision of consumer. The study shows that the price offered by web stores (excluding shipping Ajmani, H. (2012). E-Commerce in India. Retrieved from http://www.chillbreeze.com/articles_various/Ecomm- and handling charges) is lower than traditional stores. erce.asp (accessed on August 17, 2012) The information is easily and effortlessly available in the web stores. The time taken for placing order and Avery, J., Steenburgh, T. J., Deighton, J. & Caravella, M. (2008). 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